It's because they want to dump their 200k BTC on the unsuspecting public.
Right. They bought a large number of Bitcoins. Now they want to unload them. But how? Mt. Gox isn't paying out USD to traders who sell, and nobody with $20 million would trust it to Mt. Gox. Tradehill probably doesn't have the volume to sell that many without crashing the market. By creating an exchange-traded fund, and funding the initial offering with their Bitcoins, they have a vehicle for dumping 200k BTC.
Nagle, it's you! Missing you over at the speculation forum. What would you say is the Bitcoin endgame at this point?
If this is true they would've done this earlier. They bought at a very cheap price. When they announced months after purchasing, their 1% stake was worth $11M
We have elected to put our money and faith in a mathematical framework that is free of politics and human error, Tyler Winklevoss said.
they're in this for the long haul. They understand if bitcoin is to succeed, it must get into the hands of as many people as they can, in a way only people like them can.
see:
Another issue is the total amount of bitcoins they control, if they do not increase it, and money keeps pouring in (and they allow for physical deliver as most ETF's do) then you now will see bitcoins worth 100k each or more.
Not only are they going to be 'selling their bitcoins' to the investors , they will be making money on the transactions for life for 'managing' the fund.
You think mining fees are outrageous, these guys just made the most powerful ASIC miner in history. Every single transaction on that fund they will be making a profit from.
